Goga is planning his day off. He wants to get up late, swim, and watch TV . In addition, he needs to earn some money by collecting leaves in the neighbors' yards. Goga knows 7 neighbors who want to have their yards raked. Each of them has a hundred meter yard. But Goga doesn't know how much they are willing to pay. But we do . We know Maximum amount each neighbor is willing to pay for one hundred meters . KOTE - 7 , Ilia - 6 , Luiza - 5 , Giorgi - 4 , Zaza - 3 , Soso - 2 , Kato - 1 .  Goga can rake a two hundred meter area of lawn for $2 per hundred meters, at the expense of giving up his day off. He can still rake another two hundred meters, but he has to get up early and is willing to do it for $ 3 per hundred meters. In addition, he is willing to not watch TV in exchange for raking another two hundred meters for $ 4 per hundred meters. He will give up swimming in exchange for raking another two hundred meters for $ 5 per hundred meters. Questions: 1 If Goga sets the price at $ 3.5 per hundred meters, how many hundred meters will his neighbors ask him to rake? How many hundred meters will he be willing to rake? 2 Suppose Goga sets the price at $ 4.5 per hundred meters. How many hundred meters will his neighbors ask him to rake? How many hundred meters will he be willing to rake? 3 If Goga knew the demand from his neighbors, what pricing policy would he implement as a price seeker? 4 .What is the best price for both Goga and his neighbors?

Answer rating: 100% (QA)

1 If Goga sets the price at 35 per hundred meters Neighbor KOTE is willing to pay 7 for one hundred meters 235 so he will ask Goga to rake 100 meters ... View the full answer